REC Secures 200 Million Euro Loan from KfW for India's Power Sector

Mumbai, Dec 8 (PTI) Maharatna PSU under the Union power ministry REC has signed a 200-million euro loan agreement with the German developmental bank KfW.

The company in a statement said this marks REC's sixth line of credit under the Indo-German development cooperation and demonstrates the commitment to enhance the distribution infrastructure of discoms in line with the revamped distribution sector scheme (RDSS) of the Centre.

REC is the nodal agency to implement the RDSS scheme, launched to help discoms improve their operational efficiencies and financial sustainability by providing result-linked financial assistance to them by helping strengthen their supply infrastructure based on meeting pre-qualifying criteria and achieving basic minimum benchmarks.

The collaboration with KfW is expected to have a transformative impact on the operational capabilities and financial resilience of discoms, contributing to the broader goals of the RDSS scheme and the nation's power sector reforms.